this question is based on an Obscure Rule that I do not believe is relevant to the GMAT.
Concept: If the Ratio of the Speeds of 2 Runners --- Runner A and Runner B---- running in the SAME Direction around a Circular Track = p : q ----- where p/q Ratio is in its Lowest Canceled Form
then A and B will meet at (p - q) Distinct Points on the Circular Track AND the (p - q) Meeting Points around the Circular Track will evenly Divide the Circle into Equal Arc Lengths.
Further Rule: the LAST DISTINCT Meeting Point will always be the Starting Point.
Let the following Ratio be:
Speed of Runner A : Speed of Runner B = 1 : 2
Runner A and Runner B will only meet at (2 - 1) = 1 Distinct Meeting Point (which will be at the Start)
To check this, Let Speed of A = 5 m.p.s. and Let Speed of B = 10 m.p.s.
and the Circular Track = 100 miles
Time until 1st Meet = 100 / 10 - 5 = 20 Seconds.
In 20 Seconds, A will travel: 5 * 20 = 100 miles, which is 1 Lap around the track right back to the Starting Point
In 20 Seconds, B will travel: 10 * 20 = 200 miles, which is 2 Laps around the track right back to the Starting Point.
This is the only DISTINCT Meeting Place that Runners A and B will ever Meet at on the Circular Track right at the Starting Point. Every other meeting point from that instant on will take place again right at the Starting Point.
Now performing the Same Calculation for all the Runners:
Speed A : Speed B : Speed C : Speed D = 1 : 2 : 3 : 4
B and A will meet at (2 - 1) = 1 Distinct Meeting Point (the Start)
C and A will meet at (3 - 1) = 2 Distinct Meeting Points - 1/2 way around the Circle and at the Start
Since we already counted the Start, we now have 2.
D and A will meet at (4 - 1) = 3 Distinct Meeting Points - 1/3rd way around the Circle, 2/3rd way around the Circle, and back at the Start
These is 2 More Distinct Meeting Points. We now have 4
C and B will meet at (3 - 2) = 1 Distinct Meeting Point - which is the Starting Point
we already counted this Meeting Point
D and B will meet at (2 -1) = 1 Distinct Meeting Point - which is the Starting Point ***(remember, the Ratio p:q has to be in its lowest form - so reducing 4:2 --- to 2:1)
we already counted this meeting Point
D and C will meet at (4 - 3) = 1 Distinct Meeting Point - which is the Starting Point
we already counted this meeting point.
Answer- there are 4 Distinct Meeting Points on the Circular Track at which any 2 of the 4 athletes could meet each other.